Small thing that’s bugging me. If Alexander’s the only one who can’t fly, couldn’t Kiwi carry him like before? Or Paddington. For that matter, couldn’t they have used that to escape at the pier earlier?
…
::hits the “I believe” button and keeps reading.

That is a very good question. In some tales, the Elves don’t need to sleep. If any of these people are like that, then there wouldn’t be a problem. But, if they do sleep, then would their children appear in a separate dream world, thus leading into an infinite loop of worlds that are all bizarre, all completely different? Which brings me to – What is the world like whose children fall asleep and wake up on Earth?

Cats and maybe dogs. But definitely cats. They spend a lot of time sleeping, so awake in their world, and many cultures on Earth value them as companions and care for them (though exceptions exist, of course).